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MMM vs. TDG: A Head-to-Head Stock Comparison

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Here’s a clear look at MMM and TDG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolMMMTDG
Company Name3M CompanyTransDigm Group Incorporated
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryIndustrial ConglomeratesAerospace & Defense
Market Capitalization85.33 billion USD80.34 billion USD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962March 15, 2006
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of MMM and TDG by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

MMM vs. TDG: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolMMMTDG
5-Day Price Return5.58%-0.23%
13-Week Price Return6.57%0.61%
26-Week Price Return5.17%9.73%
52-Week Price Return29.86%15.63%
Month-to-Date Return7.36%-11.36%
Year-to-Date Return24.10%12.51%
10-Day Avg. Volume3.24M0.52M
3-Month Avg. Volume3.62M0.31M
3-Month Volatility25.27%29.88%
Beta1.051.03

Profitability

Return on Equity (TTM)

MMM

91.40%

Industrial Conglomerates Industry

Max
21.93%
Q3
14.23%
Median
7.81%
Q1
5.91%
Min
-3.58%

MMM’s Return on Equity of 91.40% is exceptionally high, placing it well beyond the typical range for the Industrial Conglomerates industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

TDG

37.11%

Aerospace & Defense Industry

Max
43.89%
Q3
22.42%
Median
12.50%
Q1
5.21%
Min
-6.24%

In the upper quartile for the Aerospace & Defense industry, TDG’s Return on Equity of 37.11% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

MMM vs. TDG: A comparison of their Return on Equity (TTM) against their respective Industrial Conglomerates and Aerospace & Defense industry benchmarks.

Net Profit Margin (TTM)

MMM

16.01%

Industrial Conglomerates Industry

Max
18.70%
Q3
12.58%
Median
9.26%
Q1
3.87%
Min
-2.26%

A Net Profit Margin of 16.01% places MMM in the upper quartile for the Industrial Conglomerates industry, signifying strong profitability and more effective cost management than most of its peers.

TDG

22.52%

Aerospace & Defense Industry

Max
14.54%
Q3
8.08%
Median
6.17%
Q1
2.49%
Min
-1.63%

TDG’s Net Profit Margin of 22.52% is exceptionally high, placing it well beyond the typical range for the Aerospace & Defense industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

MMM vs. TDG: A comparison of their Net Profit Margin (TTM) against their respective Industrial Conglomerates and Aerospace & Defense industry benchmarks.

Operating Profit Margin (TTM)

MMM

19.46%

Industrial Conglomerates Industry

Max
25.69%
Q3
17.03%
Median
12.85%
Q1
8.81%
Min
-0.73%

An Operating Profit Margin of 19.46% places MMM in the upper quartile for the Industrial Conglomerates industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

TDG

45.94%

Aerospace & Defense Industry

Max
16.63%
Q3
10.38%
Median
8.29%
Q1
6.21%
Min
0.95%

TDG’s Operating Profit Margin of 45.94% is exceptionally high, placing it well above the typical range for the Aerospace & Defense industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

MMM vs. TDG: A comparison of their Operating Profit Margin (TTM) against their respective Industrial Conglomerates and Aerospace & Defense industry benchmarks.

Profitability at a Glance

SymbolMMMTDG
Return on Equity (TTM)91.40%37.11%
Return on Assets (TTM)9.93%8.43%
Net Profit Margin (TTM)16.01%22.52%
Operating Profit Margin (TTM)19.46%45.94%
Gross Profit Margin (TTM)41.11%60.12%

Financial Strength

Current Ratio (MRQ)

MMM

1.72

Industrial Conglomerates Industry

Max
2.19
Q3
1.64
Median
1.38
Q1
1.13
Min
0.61

MMM’s Current Ratio of 1.72 is in the upper quartile for the Industrial Conglomerates industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

TDG

3.13

Aerospace & Defense Industry

Max
3.09
Q3
1.98
Median
1.23
Q1
1.03
Min
0.02

TDG’s Current Ratio of 3.13 is exceptionally high, placing it well outside the typical range for the Aerospace & Defense industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

MMM vs. TDG: A comparison of their Current Ratio (MRQ) against their respective Industrial Conglomerates and Aerospace & Defense industry benchmarks.

Debt-to-Equity Ratio (MRQ)

MMM

3.06

Industrial Conglomerates Industry

Max
2.27
Q3
1.47
Median
0.99
Q1
0.66
Min
0.21

With a Debt-to-Equity Ratio of 3.06, MMM operates with exceptionally high leverage compared to the Industrial Conglomerates industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

TDG

5.41

Aerospace & Defense Industry

Max
1.70
Q3
1.04
Median
0.68
Q1
0.41
Min
0.00

With a Debt-to-Equity Ratio of 5.41, TDG operates with exceptionally high leverage compared to the Aerospace & Defense industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

MMM vs. TDG: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Industrial Conglomerates and Aerospace & Defense industry benchmarks.

Interest Coverage Ratio (TTM)

MMM

-15.31

Industrial Conglomerates Industry

Max
11.17
Q3
8.02
Median
5.88
Q1
2.73
Min
-2.15

MMM has a negative Interest Coverage Ratio of -15.31. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

TDG

2.72

Aerospace & Defense Industry

Max
36.57
Q3
19.90
Median
7.04
Q1
2.40
Min
-7.63

TDG’s Interest Coverage Ratio of 2.72 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.

MMM vs. TDG: A comparison of their Interest Coverage Ratio (TTM) against their respective Industrial Conglomerates and Aerospace & Defense industry benchmarks.

Financial Strength at a Glance

SymbolMMMTDG
Current Ratio (MRQ)1.723.13
Quick Ratio (MRQ)1.122.07
Debt-to-Equity Ratio (MRQ)3.065.41
Interest Coverage Ratio (TTM)-15.312.72

Growth

Revenue Growth

MMM vs. TDG: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

MMM vs. TDG: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

MMM

1.83%

Industrial Conglomerates Industry

Max
10.17%
Q3
5.53%
Median
3.14%
Q1
1.88%
Min
0.00%

MMM’s Dividend Yield of 1.83% is in the lower quartile for the Industrial Conglomerates industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

TDG

5.52%

Aerospace & Defense Industry

Max
2.03%
Q3
1.22%
Median
0.43%
Q1
0.00%
Min
0.00%

TDG’s Dividend Yield of 5.52% is exceptionally high, placing it well above the typical range for the Aerospace & Defense industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.

MMM vs. TDG: A comparison of their Dividend Yield (TTM) against their respective Industrial Conglomerates and Aerospace & Defense industry benchmarks.

Dividend Payout Ratio (TTM)

MMM

39.27%

Industrial Conglomerates Industry

Max
181.91%
Q3
95.57%
Median
50.60%
Q1
35.01%
Min
1.76%

MMM’s Dividend Payout Ratio of 39.27% is within the typical range for the Industrial Conglomerates industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

TDG

891.68%

Aerospace & Defense Industry

Max
83.87%
Q3
49.90%
Median
16.48%
Q1
0.00%
Min
0.00%

At 891.68%, TDG’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Aerospace & Defense industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.

MMM vs. TDG: A comparison of their Dividend Payout Ratio (TTM) against their respective Industrial Conglomerates and Aerospace & Defense industry benchmarks.

Dividend at a Glance

SymbolMMMTDG
Dividend Yield (TTM)1.83%5.52%
Dividend Payout Ratio (TTM)39.27%891.68%

Valuation

Price-to-Earnings Ratio (TTM)

MMM

21.41

Industrial Conglomerates Industry

Max
36.98
Q3
22.09
Median
12.18
Q1
8.93
Min
5.63

MMM’s P/E Ratio of 21.41 is within the middle range for the Industrial Conglomerates industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

TDG

41.23

Aerospace & Defense Industry

Max
65.97
Q3
54.11
Median
34.53
Q1
23.66
Min
0.00

TDG’s P/E Ratio of 41.23 is within the middle range for the Aerospace & Defense industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

MMM vs. TDG: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Industrial Conglomerates and Aerospace & Defense industry benchmarks.

Price-to-Sales Ratio (TTM)

MMM

3.43

Industrial Conglomerates Industry

Max
3.60
Q3
2.10
Median
0.68
Q1
0.42
Min
0.11

MMM’s P/S Ratio of 3.43 is in the upper echelon for the Industrial Conglomerates industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

TDG

9.29

Aerospace & Defense Industry

Max
8.07
Q3
4.49
Median
2.42
Q1
1.39
Min
0.00

With a P/S Ratio of 9.29, TDG trades at a valuation that eclipses even the highest in the Aerospace & Defense industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

MMM vs. TDG: A comparison of their Price-to-Sales Ratio (TTM) against their respective Industrial Conglomerates and Aerospace & Defense industry benchmarks.

Price-to-Book Ratio (MRQ)

MMM

18.90

Industrial Conglomerates Industry

Max
4.89
Q3
2.51
Median
1.06
Q1
0.60
Min
0.27

At 18.90, MMM’s P/B Ratio is at an extreme premium to the Industrial Conglomerates industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

TDG

10.13

Aerospace & Defense Industry

Max
13.67
Q3
7.92
Median
4.65
Q1
2.68
Min
0.82

TDG’s P/B Ratio of 10.13 is in the upper tier for the Aerospace & Defense industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

MMM vs. TDG: A comparison of their Price-to-Book Ratio (MRQ) against their respective Industrial Conglomerates and Aerospace & Defense industry benchmarks.

Valuation at a Glance

SymbolMMMTDG
Price-to-Earnings Ratio (TTM)21.4141.23
Price-to-Sales Ratio (TTM)3.439.29
Price-to-Book Ratio (MRQ)18.9010.13
Price-to-Free Cash Flow Ratio (TTM)31.5741.79